This bill introduces a cost of living adjustment (COLA) for members of the New Hampshire retirement system who have been retired for at least 60 months as of July 1, 2025. Specifically, it amends RSA 100-A by adding a new section, 100-A:41-f, which stipulates that eligible retired members or their beneficiaries will receive a supplemental allowance of 1.5% of their annual retirement allowance, capped at the first $50,000. This adjustment will be effective on the first anniversary date of the retiree occurring on or after July 1, 2026, and will become a permanent addition to the beneficiary's base retirement allowance. The funding for this supplemental allowance will be sourced from the state annuity accumulation fund.

The bill does not authorize new funding or positions and is projected to have a fiscal impact, with estimated expenditures of $1,570,000 for the state and $6,620,000 for political subdivisions by FY 2028. The actuarial cost of the supplemental allowance is expected to increase the actuarial accrued liability by $100.7 million, which will be amortized over a period not exceeding 20 years. Additionally, the bill entails administrative costs related to updating the pension administration system to accommodate these changes.